Land Loans in 2025: Financing the Foundation of Your Future
- David Marsh
- Jun 13
- 2 min read
Want to build your dream home in the desert? Start a tiny house village? Buy five acres in the middle of nowhere just to scream into the void? First step: buy the land. But spoiler alert — buying land isn’t like buying a house. That’s where land loans come in, and in 2025, they’re more important (and strategic) than ever.
At Grand Funding, we help you do more than dream — we help you finance the dirt beneath your future.
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What’s a Land Loan, Exactly?
A land loan is financing used to purchase raw, undeveloped, or semi-developed property. This can include:
• Raw Land – no utilities, no roads, no nothing (just vibes)
• Improved Land – utilities and access roads are in place
• Lot Loans – for parcels within subdivisions or planned communities
Different land types = different risks to lenders, which means different terms, rates, and down payments.
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Why Buy Land in 2025?
• Arizona and California still offer affordable acreage outside metro areas
• Remote work = more freedom to live where you want
• Zoning changes are opening up creative use options (hello, glamping sites!)
• Developers are buying again — and competition is heating up
Whether you’re looking to build, hold, or develop, land is a powerful investment. Especially in fast-growing markets like Maricopa, San Bernardino, and Pinal counties.
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Land Loan Terms to Expect:
• Higher down payments – usually 20–35%
• Shorter loan terms – often 3–10 years
• Interest rates – 6–12% depending on land status and borrower strength
• Detailed plans – lenders want to see blueprints or at least a development plan
With Grand Funding, we help you craft a compelling story for the land — why you want it, how you’ll use it, and how you’ll pay for it. Banks see dirt. We see potential.
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Pro Tips for Getting Approved:
• Get a survey and zoning report — lenders love a good legal boundary
• Show your exit strategy — will you build, sell, or subdivide?
• Provide comps and location insights — “middle of nowhere” isn’t a dealbreaker if you can prove demand
We’ll help you navigate every step — from first offer to final blueprint.
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